Jun 8, 2012 4:55 AM GMT+0800 Most U.S. stocks fell as a late-day slump in banks and technologyshares wiped out an early rally triggered by China s firstinterest-rate cut since 2008. Oil slid, while Treasuries rose andthe dollar was little changed. About three stocks dropped for every two that gained on U.S.exchanges and the Standard & Poor s 500 Index erased a rallyof as much as 1.1 percent to close down less than 0.1 percent at 4p.m. in New York. Bank of America Corp. and Oracle Corp. pacedlosses in lenders and computer companies. Oil, which surged as muchas 2.4 percent this morning, slipped 0.2 percent to $84.82 a barrelin the regular session and extended declines to as much as 1.9percent in after-hours trading. The 10-year U.S. note yield losttwo basis points to 1.64 percent. Equities began paring gains at 10 a.m. New York time, whileTreasuries turned higher and commodities slid, as Federal ReserveChairman Ben S. Bernanke said the central bank will need to assessconditions before deciding if more measures are needed to stoke aneconomy threatened by Europe s debt crisis and U.S. budget cuts.The S&P 500 lost its entire gain by the final 15 minutes oftrading as the Associated Press reported that a municipal strikethreatens to derail a June 17 Greek election that could determinethe nation s future in the euro. It s disappointing that the markets were not able to sustain themomentum established by the Chinese action, said PeterJankovskis, who helps manage about $2.8 billion at OakbrookInvestments in Lisle, Illinois. Bernanke s comments weren tindicative of a Fed that will take aggressive action in the nearfuture. They didn t match to expectations. There s also concernabout the upcoming Greek election. We ll have to wait and see howall that plays out. Early Rally Stocks rallied earlier as the People s Bank of China said it willlower its benchmark lending and deposit rates effective tomorrow. The S&P 500 (SPX) retreated after staging its biggest advanceof the year yesterday, a 2.3 percent surge triggered by speculationglobal policy makers will act to spur growth. The index hasrebounded almost 3 percent from a five-month low on June 1,recouping its losses from a report last week showing U.S. jobsgrowth in May was the weakest in a year. Bank of America Corp. (BAC) and Hewlett-Packard Co. dropped atleast 1.3 percent for the biggest declines in the Dow JonesIndustrial Average, which trimmed a rally of as much as 140 pointsto 46 points by the close. Newmont Mining Corp. slumped 2 percentas gold tumbled the most in two months after Bernanke reducedspeculation of more quantitative easing. Christmas Gifts Sometimes investors look for their Christmas gifts in June, said Bruce McCain, who helps oversee more than $20 billion as chiefinvestment strategist at the private-banking unit of KeyCorp inCleveland. China s action helps to calm some of the investors fears. Yet Bernanke is throwing some cold water on expectations forQE3. Maybe the Fed will deliver that ahead of December, but I thinkwe d need to see a lot more deterioration in the economy beforethat happens. Bernanke on June 19-20 will lead the Federal Open Market Committeein a policy-setting meeting confronting the slowest employmentgrowth in a year and a worsening debt crisis in Europe. The U.S.added 69,000 jobs last month, the fewest in a year, even as the Fedmaintained record stimulus. Bernanke today also warned lawmakersthat a severe tightening of fiscal policy at the beginning ofnext year that is built into current law -- the so-called fiscalcliff -- would, if allowed to occur, pose a significant threat tothe recovery. Fed Watch In his prepared comments, Fed chairman didn t call forconsideration of additional stimulus, a contrast with speechesyesterday in which Vice Chairman Janet Yellen said the economy remains vulnerable to setbacks and may warrant moreaccommodation. First-time claims for jobless benefits fell by 12,000 to 377,000 inthe week ended June 2 from a revised 389,000 the prior week thatwas higher than initially estimated, the Labor Department saidtoday. The median estimate of 49 economists surveyed by BloombergNews called for 378,000 claims. Shares of smaller U.S. companies foreshadowed this week s gains instocks as they did when the worst bear market since the GreatDepression ended, according to Andrew Wilkinson, a Miller Tabak& Co. strategist. Dividend Yields The Russell 2000 Index (RTY) s dividend yield, based oncompanies payouts during the past 12 months, was 30 basis pointshigher than the rate on 10-year Treasury notes at the end of lastweek. The gap was the widest since March 9, 2009, the day that thegauge bottomed out after a 59 percent plunge in 17 months. Four shares rose for every one that declined in the Stoxx 600.Sweden s OMX Index jumped 3.2 percent, the most since November, asthe market reopened after a public holiday. A European gauge ofbanks rose 2 percent. Johnson Matthey Plc (JMAT) climbed 4.9 percent after the maker of athird of all autocatalysts reported a 74 percent jump in full- yearprofit and said that it will pay a special dividend. Tullow Oil Plcadded 2.1 percent after saying it discovered crude at its offshoreIvory Coast well. The Spanish 10-year bond yield slid 19 basis points to 6.09 percentafter the nation sold 2.07 billion euros ($2.6 billion) of bonds,more than its maximum target of 2 billion euros. The Markit iTraxxSovX Western Europe Index of credit-default swaps on 15 governmentsdecreased four basis points. The extra yield investors demand to hold Spanish 10-year bondsinstead of benchmark German bunds declined 23 basis points to 471basis points, or 4.71 percentage points. The 10-year Italian yieldrose four basis points to 5.71 percent, while the similar-maturitySwedish yield jumped 31 basis points to 1.45 percent. Spain Ratings After European markets closed, Fitch Ratings lowered Spain s debtto BBB from A, leaving it two notches from junk with a negativeoutlook. The ratings firm cited the cost of recapitalization thenation s banks and a lengthening recession. France s 10-year bond yield rose 16 basis points to 2.57 percenteven as borrowing costs fell at an auction. The country issued 3.48billion euros of the benchmark bond at an average yield of 2.46percent, lower than the 2.96 percent at the last sale on May 3. The euro was stronger versus eight of 16 major peers and swungbetween gains and losses below $1.26 against the dollar. Emerging Markets The S&P GSCI gauge of 24 commodities lost 0.2 percent, erasinga rally of as much as 1.6 percent after Bernanke s remarks.Cotton, soybeans and nickel rallied at least 3 percent for thebiggest gains, while natural gas and silver fell more than 3percent. Gold for August delivery fell 2.8 percent to settle at$1,588 an ounce in New York, the biggest decline for a most-activecontract since April 4. The MSCI Emerging Markets Index (MXEF) rose 1.2 percent and rose3.5 percent in three days, its biggest rally since February.India s Sensex Index jumped 1.2 percent after Prime MinisterManmohan Singh pledged yesterday to revive growth throughinfrastructure spending. South Korea s Kospi index rallied 2.6percent as the market re-opened after a holiday yesterday.Benchmark gauges in Russia, the Czech Republic and the Philippinesgained more than 1 percent. Analysts are favoring stocks in developed countries over theiremerging market rivals by the most since 2009, betting their globalreach will provide a cushion during a weakening recovery. Securities firms have boosted average rankings in the 24- countryMSCI World Index of advanced nations during the second quarterafter cutting recommendations worldwide for seven months, accordingto data compiled by Bloomberg from more than 62,000 ratings. Theylowered developing countries during the period, in which $6.3trillion was erased from global equities. We are high quality suppliers, our products such as Hydraulic Crawler Excavator , Mini Skid Steer Loader for oversee buyer. To know more, please visits Gasoline Forklift Truck.
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